The Pakistan Business Council (PBC) has identified 25 products that could help fetch an additional $3.3 billion in exports, and asks the government to strike an FTA deal with China only with a zero-rated facility on its markets for textile items.
An FTA between Pakistan and China has expired, and is now being reconsidered by the two governments. The PBC on the request of federal secretary commerce has placed its proposals for the country's exports growth to China under the expected FTA.
The council also wants government's policies to benefit the local industry in the new FTA. It says that the country in trade with China can benefit more in the new trade arrangements if around 25 different of export-oriented products are included in a list for zero-tariff markets.
The products range mainly from finished textile items, agriculture and leather goods. At present, the PBC says, Pakistan's exports of the identified items to China earn only $946 million. It estimates that the export earnings to China can grow to $3.3 billion if exported under the zero-rated regime.
The largest export product that could help Pakistan earn more in terms of value to China is "semi-milled or wholly milled rice, whether or not it is polished or glazed." This agriculture item can fetch up to $1.143 billion from the existing $193 million.
Similarly, textile items "men's and boys' trousers, breeches, cotton T-shirts, singlets, and vests of cotton, knitted or crocheted" is likely to fetch up to $339 million from existing the $4.60 million. China imposes 8 percent duty on Pakistani import of this item, whereas ASEAN pays no duty on the same commodity to Chinese markets.
"China has placed 65 percent duty on Pakistani rice import while duty on rice import from ASEAN is 35 percent," PBC CEO Ahsan Malik told Business Recorder on Wideness.
Flaws in the last FTA with China, which ended recently, started in 2006, he said, and it failed to boost up Pakistan's exports. "These 25 products can help the country augment its trade with China," he noted.
He also said that Australia and New Zealand are two of those countries whose exports to China enjoy greater duty concessions than those from Pakistan.
"Many products, which the PBC has proposed in the list for new FTA may have been part of the last FTA, but we never negotiated for tariff concession with China," he said. He said that the PBC contributes to the government's economic policies through its proposals.
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For Inclusion in Pakistan "Request List for "Zero Tariff' Market Access'
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All figures 1180 millions
China's Equivalent ad Equivalent ad
Exports to Pakistan's Imports valorem tariff valorem tariff
the world exports from the faced by faced by Export
Code Product Lable in 2016 to China world Pakistan ASEAN Potential'
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Semi-milled or wholly milled
10063090 rice, whether or not polished 1,419.00 193.10 1,337.00 65.00 35.00 1,143.90
or glazed
62034290 Men's or boys trousers, 544.00 4.60 343.60 8.00 0.00 339.00
breeches, nes, of cotton
1-shirts, singlets and other
61091000 vests of cotton, knitted or 205.00 2.60 397.00 9.00 0.00 202,40
crocheted
Women's or girls' trousers,
62046290 bib and brace overalls, 366.00 7.00 207.00 13.00 0.00 200.00
breeches and shorts of cotton
(excluding..
10064000 Broken rice 252.00 26.70 217.00 65.00 20.00 190.30
Single cotton yarn, of
52051200 811.00 670.30 2,144.00 4.00 0.00 140.70
>: 85% cotton by weight and
with a linear
G rain splits leather "incl.
41071200 parchment-dressed leather", 116.00 13.00 489.00 4.00 0.00 103.00
of the whole hides and skins
of bovine...
61009090 1-shirts,~ingletsandother 99.50 0.00 194.00 9.30 0.00 99.50
vests, knitted or crocheted:
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Export Potential is the additional export that is theoretically achievable for a product.
It however does not take into account freight costs, marketing channels in the export market, consumer preferences among others,
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China's Equivalent adEquivaIent ad
Exports to Pakistan's Imports valorem tarifvalorem tariff
the world exports from the faced by faced by Export
Code Product Label in 2016 to China world Pakistan ASEAN Potential
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Of other textile materials:
Other
61051000 Men's or boys' shirts, knitted 210.00 1.50 94.00 13.60 0.00 92.50
orcrocheted: Of cotton
Frozen flat fish
Pleuronectidae, Bothidae,
03033900 Cynoglossidae, Soleidae, 101.00 13,00 206.00 8.00 0.00 88.00
Scophthalmidae and
Citharidae...
Leather further prepared
after tanning or crusting "Incl.
41131000 parchment-dressed leather", 97.00 9.50 166.00 9.80 0.00 87.50
of goats...
Paper and paperboard,
48115900 surface-coloured, surface 82.00 0.10 203.00 8.00 0.00 81.90
decorated or printed, coated,
impregnated or...
Footwear with outer soles of
64039900 rubber, plastics or 69.00 0.00 870.00 5.00 0.00 69.00
composition leather, with
uppers of leather...
Full-length or knee-length
61159500 stockings, socks and other 143.00 1.50 61.00 11.20 0.00 59.50
hosiery, incl. footwear
without applied...
Vegetable fats and oils and
15162000 Their fractions, partly or 53.00 0.00 141.00 25.00 0.00 53.00
wholly hydrogenated, interesterified,...
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China's Equivalent ad Equivalent ad
Exports to Pakistan's Imports valorem tariff valorem tariff
the world exports from the faced by faced by Export
Code Product Label in 2016 to China world Pakistan ASEAN Potential'
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Men's or boys'trousers, bib
61034200 and brace overalls, breeches 51.00 0.10 73.00 8.00 0.00 50.90
and shorts of cotton, knitted or...
Women's or girls'trousers,
62046300 bib and brace overalls,
breeches and shorts of 47.00 0.04 66.60 8.80 0.00 46.96
synthetic fibres...
52010090 Other Cotton, neither carded 41.00 0.15 1,565.00 20.00 10.00 40.85
nor combed
Women's or girls trousers,
62046900 biband brace overalls,
breeches and shorts of textile 71.00 0.40 41.00 8.00 0.00 40.60
materials...
Made-up articles of textile
63079000 materials, incl. dress patterns, 40.00 0.60 127.00 11.00 0.00 39.40
n.e.s.
Sugar confectionery not
17049000 containing cocoa, incl. white 39.00 0.10 180.00 8.20 0.00 38.90
chocolate (excluding chewing gum)
Household articles and toilet
39249000 articles, of plastics (excluding 34.00 0.00 116.00 5.00 0.00 34.00
tableware, kitchenware, baths,...
Floor cloths, dishcloths,
63071000 dusters and similar cleaning 385.00 0.30 26.00 7.00 0.00 25.70
cloths, of all types of textile materials
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China's Equivalent ad
Export to Pakistan's Import Valorem tariff Equlvalent ad
the world export from the faced by valorem tariff Export
Code Product Label in 2016 to China world Pakistan faced by ASEAN Potential
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Men's boy's shirt of textile
Materials, knitted or
61059000 253.00 0.60 6.00 8.00 0.00 5.40
crocheted (excluding of
cotton or man-made...
Men's boy's trousers, bib
And brace overalls, breeches
61034900 15900 1.40 5.00 8.00 0.00 3.60
and shorts of textile
materials,...
Current Expots to China of 946.0 Additional Petential at "Zero Tariff" 3,276.0
these products Market Access
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